Iván Martén is the Senior Partner and Managing Director of The Boston Consulting Group and Global Director of the BCG Energy Area. With over 27 years' experience in energy sector projects at international level.
How do you think the Oil&Gas sector will change after the current crisis?
The sector is going through a severe cost rationalization as a result of the liquidity shortage of E&P operators. This results in a major cost deflation of the industry on the one hand and to a portfolio optimization on the other, where future returns are valued more highly than the production increase. I believe what lies ahead is not a cycle change as in previous times but rather a new sector paradigm.
How do you envisage Tubacex will change in the new environment?
The current crisis has dramatically reduced the margins of the entire Supply Chain of the sector and is forcing service and equipment companies to consolidate to reduce the costs with which they've been operating and increase competition in the sector. Moreover, in the new environment, equipment standardization and technology adaptation to the characteristics of each project, trying to avoid over-specifications, are increasingly becoming major trends.
When do you think we will return to a normal investment situation in the sector?
Over recent months, OPEC production has started to adjust so we are probably in a situation leading up to a slow recovery of prices, which will consolidate in two or three years rising to $60 or $70/bbl. However, more time is needed for operators to consider that as the level necessary to make their investment in new developments profitable. Those investments will also be different to those we had until now as a clear refocusing of the investment portfolio is taking place. In any event, the «normal» future situation will be unlike anything we have lived so far.
Did you take part in the two major strategic plans in Tubacex in 2004 and 2008? What was your experience with us?
It was a pleasure for me to work with Tubacex in the definition of its strategy and improving its competitive edge. I believe those projects made a significant contribution to define the Tubacex road map. My greatest satisfaction was to see how the recommendations we made together were undertaken and implemented by the teams. I still remember a presentation made by the Management Team showing how they had far exceeded the targets we had set.